The 50 seater bus was taken from a bus depot in Carndonagh, Co Donegal and driven for almost 10 miles to a remote beach before it was torched.
The bus was driven cross-country before the thieves torched the bus.
The smoldering shell of the once red and white bus was found by walkers on Friday morning in a car park at Culdaff beach.
A full forensic examination has taken place on the bus in an attempt to locate the thieves.
The bus, valued at more than €20,000, was owned by the Lough Swilly Bus Company.
A spokesman for the Garda Press office confirmed a full investigation into the theft has been launched.
Nobody was injured in the incident.
“A school bus was reported stolen and was located burned out. The matter is under investigation,” said a spokesman.
Locals have slammed the act of vandalism on the bus which was used to transport pupils to a number of local schools o the Inishowen Peninsula.
Gardai have appealed for anybody who may have seen anybody driving the bus between the hours of 11pm on April 12th and 7am on Friday to contact them.
Our weekend story on the incident is below: